Iowa Student Loan

College Loans for Iowa Students

Iowa College Student Aid Commission helps Iowa students with their college loan needs. Their services include:

  • Iowa College Aid is the designated guarantor for the state of Iowa.
  • Iowa
    College Aid will save Iowa families over $4.6 million this year by
    paying the 1% federal default fee on Stafford and PLUS loans guaranteed
    for the 2008-2009 award year.
  • Iowa College Aid guaranteed over $463 million in Federal Stafford and PLUS loans last year alone.
  • Iowa College Aid oversees school and lender federal student loan programs.
  • Iowa College Aid provides information and resources for all Iowans on student financial aid.

Loans Available to Iowa Students

Federal Perkins Loans

Perkins Loans are for students with exceptional financial need. The college or university acts as the lender using a limited pool of funds provided by the federal government.

  • You have a 9 month grace period before repayment begins (after you graduate, leave school or drop to less than half-time enrollment status).
  • The interest rate is fixed at 5%.
  • You do not pay interest that accrues while you are in school or during your grace period.
  • You will make your payments to your college or the college's loan servicer.

Federal Stafford Loans

Stafford Loans are delivered through two student loan programs: the Federal Family Education Loan Program (FFELP) and the Federal Direct Loan Program. You can get subsidized or unsubsidized Stafford loans.

  • You have a 6 month grace period (after you graduate, leave school or drop to less than half-time enrollment status).
  • The federal government limits the amount student may borrow during an academic year. 
  • If you get a Subsidized loan then the government pays the interest that accrues while you are enrolled in
    school at least half-time, during your grace period, or during
    authorized deferments.
  • For Un-Subsidized loans you are responsible for the interest that accrues from the time you receive the funds until the loan is paid in full.

Grad PLUS Loan

Grad PLUS are federally insured loans available to graduate/professional student to pay educational expenses.

  • There is no grace period. Repayment begins 60 days after the loan funds are fully disbursed.
  • In-school deferment is available to postpone payments for borrowers who are enrolled at least half-time.
  • Borrower is subject to a credit check.

Parent PLUS Loan

Parent PLUS loans are federally insured loans available to parents of dependent students. These loans are typically available to pay unmet educational expenses and may be used as an alternative to private loans.

Private Loans

Private loans are not federally insured loans, but rather are offered by private lenders.

  • Your grace period and interest rate vary by lender.
  • You are usually responsible for paying interest that accrues from the time you receive the loan funds until paid in full.
  • Deferment and forbearance options are usually limited and vary by lender

Iowa Student Loan Liquidity Corp

Iowa Student Loan was established in 1979 as a private, nonprofit corporation with a mission to help students and parents obtain the financial resources needed to fund postsecondary education. Since then, Iowa Student Loan has helped more than 260,000 students pay for college.

Iowa Student Loan Consolidation

Most of the government issued Iowa student loans can by consolidated into one low payment. Students shall check with their lender and financial aid advisor to explore these options.

Iowa Student Loan Forgivness & Cancellation

A portion of Iowa student loans may be canceled or forgiven under certain circumstances. There are different ways that you may earn or become eligible to receive these types of benefits. Below are some ways to get your Iowa Loan Forgiven:

Federal Employees

The federal government has expanded its loan repayment benefits to a greater number of employees who remain in public-sector positions for at least three years.

  • Military Service
  • Nursing Loan Forgiveness

Perkins Loan Borrowers
The Perkins Loan Program has additional forgiveness opportunities that are not available through the Stafford Loan Program.

  • Chiropractic Loan Forgiveness
  • Teacher Loan Forgiveness
  • Public Service Loan Forgiveness

Repaying Iowa Student Loan

Students have serveal options to repay their Iowa student loan.  Following are the widely accepted loan repayment plans in Iowa:

  • Automatic payment plan
  • Monthly payments by mail
  • Online payments
  • Pay by phone